Sensex at seven-month low; Wipro tanks over 12 percent

Mumbai: The BSE benchmark Sensex on Tuesday extended losing run to the fifth day sliding over 211 points to end at seven-month low of 18,226.48 on sharp losses in IT stocks led by Wipro which tanked over 12 percent on the first trading session after a spinoff of its non-IT business.

The Bombay Stock Exchange 30-share gauge resumed better and touched a high of 18,565.56 on firm Asian cues. However, heavy selling after mid-session pulled it down to settle near the day's low level of 18,226.48, registering a fall of 211.30 points or 1.15 percent. Previously, it had settled at 18,021.16 on September 13, 2012. In five days of trading, Sensex has plunged by 814.47 points or 4.28 percent.

Country's third largest software services exporter, Wipro, was at the receiving end with a fall of 12.19 percent and was the top loser from the Sensex pack, wiping out almost Rs 11,900 crore from its market value. Today was its first day of trade as standalone IT stock after it hived off its three non-IT business divisions into a privately-held company.

Ahead of its earnings on Friday, Infosys lost 2.36 percent and continued to be on the selling list. Besides IT stocks, refinery, PSU, FMCG and realty shares attracted profit-booking even at current lower levels.

Similarly, CNX Nifty index fell by 47.85 points to end at 5,495.10, also its lowest closing since September 13, 2012. "Selling pressure set in post noon. Markets swinged from being close to 1 per cent plus in the morning, to end the day with a loss of 1 percent, when compared to yesterday," said Milan Bavishi, Head Research, Inventure Growth and Securities.

Sustained selling by FIIs, the main market mover, is one of the main reasons behind the recent downslide. FIIs sold shares worth Rs 163.95 crore on Monday. Selling was seen all across with 12 out of 13 sectoral indices closed with losses up to 2.10 percent. Bucking the overall trend, BSE-Auto rose by 0.41 percent following 2.2 percent gain in Tata Motors -- the top gainer from Sensex. TCS also gained 1.1 percent after announcing Alti SA buy.